According to figures from the Vahan website as of May 1, Ola Electric saw its market share increase to more than 50% in April, selling 33,934 electric two-wheelers, despite a larger 52 percent decline in overall EV two-wheeler sales to 64,013 units from the previous month.
Industry sources told Moneycontrol that April is a historically slow sales month and that the drop in post-holiday demand is the key cause of the total sales decline. 64,855 electric vehicle two-wheeler sales were recorded in April 2023.
“YoY (year-over-year) sales of electric two-wheelers remain flat at 1%. This is a result of April typically being a weak sales month. A number of OEMs were offering steep discounts in honor of the end of the fiscal year last month, which would have increased sales, according to an industry insider who asked to remain anonymous.
In March, electric two-wheeler sales in India reached a record 136,000 units, a 50% rise over the same month last year. Thanks to year-end reductions, sales reached 942,088 units in the 12 months that concluded on March 31. This represents an increase of about 30% over the prior year.
To be clear, Vahan doesn’t keep track of bookings—only the overall amount of transactions that are recorded. It also does not include data for Lakshadweep, Madhya Pradesh, and Telangana, nor does it account for low-speed E2W sales. The Ministry of Heavy Industries (MHI) has been blocking subsidies since last year, which is another reason given by industry analysts for the decreased sales.
Growth in electric two-wheelers has stagnated, which can be linked to various OEMs’ difficulties as well as the large cutback in subsidies. With the exception of companies like Ola, which have drastically lowered their pricing, the cost of electric vehicles has increased because to the reduction in subsidies, according to Sohinder Gill, director general of the Society of Manufacturers of Electric Vehicles (SMEV).
Furthermore, the government’s problems with subsidies have made it harder for some automakers to provide reasonably priced goods, which has slowed the expansion of the industry. He continued, “As a result, the market for electric two-wheelers has grown very little.”
In response to a question from the Lok Sabha in March 2023, Krishan Pal Gurjar, the minister of state for heavy industries, stated that the Central government had stopped the two electric vehicle manufacturers’ pending subsidy applications under the FAME India Phase II plan.
Two Original Equipment Manufacturers (OEMs) had complained to the ministry about their companies’ violations of the Phased Manufacturing Programme (PMP) standards under the Faster Adoption and Manufacturing of Electric Vehicles (FAME India Scheme) Phase-II.
Additionally, the FAME scheme’s budgetary allocation was cut by the Central government by about 44% to Rs 2,671 crore for FY25, which industry participants believe could cause the adoption of EVs to slow down.
FAME India, which stands for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, is a government subsidy program under the National Electric Mobility Mission Plan (NEMMP).
Ola Electric dominates the market share game
With sales of about 33,062 units in April, Ola Electric captured about 50% of the market despite a general decline. To be sure, Ola Electric’s monthly sales have decreased by 34.8% percent. In April of the previous year, Ola Electric sold about 22,068 units.
“This increase in Ola Electric’s market share has been largely attributed to our strong cost structures and vertically integrated production capabilities. Ola Electric is prepared and thrilled to join the mass-market 2W EV segment in India with the upcoming delivery of our mass-market S1 X portfolio” said Anshul Khandelwal, Chief Marketing Officer of Ola Electric.
It’s interesting to note that Bajaj saw an 84 percent YoY increase in sales in April, reaching about 7,515 units. Bajaj sold about 18,054 two-wheeler units in March. Several players have also lowered their production to deplete their current stock in order to release newer products in the upcoming months, industry sources told Moneycontrol.
For instance, TVS Motors saw a 13% YoY decline in sales to 7,653 units. TVS sold about 24,000 units in March. TVS reported sales of about 8,760 units in April 2023. Sales at Ather Energy fell 48% year over year to 4,502 units. Sales for the company increased to 7,802 units in April 2023. Ather reported selling 3,010 units in March 2024.
